Tudor, Pickering, Holt & Co Investment Banking
After-Tax Distribution Accretion / (Dilution
AM & AMGP | For Average AM Unit Holder at AMGP Proposal | AR Base Case
AM Accretion / (Dilution) - %
At 1.679x Exchange Ratio
Status Quo AM:
Pro Forma AMGP:
$ Acc / (Dil):
Exchange Ratio
$0.91
$0.85
($0.06)
PF AMGP Coverage 1.205x
$3.415
$3.415
$3.415
(6.6%)
$3.415
2H 2018E
$3.000
1.713x
1.730x
1.732x
1.0%
(6.6%)
2019E
$221
$2.23
$0.02
1.224x
Accretion / (Dilution) Analysis at Various XRs
Cash Impled
Consid. / After-Tax 2H 2018E
Unit
2019E
1.0%
1.38
1.4%
(2.1%)
0.8%
2020E
$2.85
$2.79
($0.06)
1.13 1x
2020E
(2.1%)
(1.9%)
(1.6%)
(4.7%)
(1.3%)
2021E
$3.41
$3.25
($0.16)
1.119
2021E
(4.2%)
(4.0%)
(4.5%)
(9.1%)
20ZZE
$4.09
$3.71
($0.37)
1.076x
2022E
(9.1%)
(9.0%)
AM Proposal
(8.8%)
(9.2%)
AMGP Accretion / (Dilution) - %
Status Quo AMGP: $0.23
Pro Forma AMGP:
$0.51
$ Acc / (Dil):
$0.27
PF AMGP Coverage
1.205x
Exchange Ratio
1.679x
1.696x
1.713x
116.0%
1.730x
2H 2018E
1.732x
2H 2018E
116.0%
114.1%
112.1%
Accretion / (Dilution) Analysis at Various XRs
110.3%
95.7%
108.7%
2019E
$0.68
$1.33
$0.65
1.224x
2019E
95.7%
93.9%
92.2%
90.5%
89.1%
61.9%
Source: Management projections and FactSet as of 8/30/2018
Note: AMGP accretion / (dilution) based on SQ AM Management Coverage. After-tax distributions is distribution from entity less attributable qualified dividends and gains on capital taxes.
Note: 1.679x implied after-tax XR represents a 1.61-4x equity XR and cash consideration of $3.415 / unit. Cash assumed to be used to eliminate unitholder tax liability.
2020E
$1.03
$1.66
$0.63
1.131x
2020E
61.9%
60.7%
CONFIDENTIAL DRAFT
SUBJECT TO CHANGE
58.4%
45.4%
2021E
$1.33
$1.94
$0.60
1.119x
2021E
44.3%
43.2%
42.1%
41.1%
30.1%
2022E
$1.70
$2.21
$0.51
1.076x
2022E
30.1%
29.0%
TUDORPICKERING
HOLT&COCHANT BANKING
27.9%
26.9%
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